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Something unpopular:
The bulk of the "losses" in #Lebanese #lollar deposits is just interest not made at all (& interst on interst).
Many, many are actually ahead or breaking even.
#Yieldhogs were making >5-7½% extra for years, >60-100% per decade.
Yieldhogging is not risk-free.
The bulk of the "losses" in #Lebanese #lollar deposits is just interest not made at all (& interst on interst).
Many, many are actually ahead or breaking even.
#Yieldhogs were making >5-7½% extra for years, >60-100% per decade.
Yieldhogging is not risk-free.
2) #Yiledhogging is actually defined and described in Fooled by Randomness (2001). https://twitter.com/jliegeman/status/1338722907078316033?s=20
3) Depositors were clearly not 100% victims, particularly when wealthy & supposed to be sophisticated.
80% of Lebanese depositors have cashed out (since it's a Pareto law: 1% of depositors have >50% of deposits).
FBR (2001)
80% of Lebanese depositors have cashed out (since it's a Pareto law: 1% of depositors have >50% of deposits).
FBR (2001)
4) In the #INCERTO: risk-free income (w/no downside risk) has been banned since Babylon as risk transfer blows up societies.
Interdicts exist in Catholicism & Islam...
Why do Levantine need to rediscover rules their ancestors made?
Depositors are NOT 100% innocent
#LebanonPonzi
Interdicts exist in Catholicism & Islam...
Why do Levantine need to rediscover rules their ancestors made?
Depositors are NOT 100% innocent
#LebanonPonzi
